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Output, renewable and non-renewable energy consumption and international trade: Evidence from a panel of 69 countries

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  • Ben Jebli, Mehdi
  • Ben Youssef, Slim

Abstract

This paper uses panel cointegration techniques to examine the causal relationship between output, renewable and non-renewable energy consumption, and international trade for a sample of 69 countries during the period 1980-2007. In the short-run, Granger causality tests show that there is a bidirectional causality between output and trade (exports or imports), a bidirectional causality between non-renewable energy and trade, and a one way causality running from renewable energy to trade. In the long-run, a bidirectional causality between renewable energy and imports and a unidirectional causality running from renewable energy to exports, are noticed. Our long-run OLS, FMOLS and DOLS estimates suggest that renewable, non-renewable energy consumption and trade have a positive impact on economic growth. Our energy policy recommendations are the following: i) any non-renewable energy policy should take into account the importance of international trade, ii) more renewable energy use should be encouraged by national and international competent authorities in order to increase international economic exchanges and promote economic growth without harming the environment, and iii) increasing imports, particularly by developing countries, is a good vehicle for renewable energy technology transfer and contributes to increase renewable energy consumption in the long-run, thus contributing to reducing greenhouse gas emissions.

Suggested Citation

  • Ben Jebli, Mehdi & Ben Youssef, Slim, 2013. "Output, renewable and non-renewable energy consumption and international trade: Evidence from a panel of 69 countries," MPRA Paper 56494, University Library of Munich, Germany, revised 07 Apr 2014.
  • Handle: RePEc:pra:mprapa:56494
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    Citations

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    as


    Cited by:

    1. Huanying Cui, 2016. "China’s Economic Growth and Energy Consumption," International Journal of Energy Economics and Policy, Econjournals, vol. 6(2), pages 349-355.
    2. repec:eee:rensus:v:81:y:2018:i:p2:p:2335-2342 is not listed on IDEAS
    3. Ben Jebli, Mehdi & Ben Youssef, Slim, 2016. "Combustible renewables and waste consumption, agriculture, CO2 emissions and economic growth in Brazil," MPRA Paper 69694, University Library of Munich, Germany.
    4. Alvarez-Herranz, Agustin & Balsalobre-Lorente, Daniel & Shahbaz, Muhammad & Cantos, José María, 2017. "Energy innovation and renewable energy consumption in the correction of air pollution levels," Energy Policy, Elsevier, vol. 105(C), pages 386-397.
    5. Ben Jebli, Mehdi & Belloumi, Mounir, 2017. "Investigation of the causal relationships between combustible renewables and waste consumption and CO2 emissions in the case of Tunisian maritime and rail transport," Renewable and Sustainable Energy Reviews, Elsevier, vol. 71(C), pages 820-829.
    6. Ben Jebli, Mehdi & Ben Youssef, Slim, 2015. "Renewable Energy Consumption and Agriculture: Evidence for Cointegration and Granger causality for Tunisian Economy," MPRA Paper 68018, University Library of Munich, Germany.
    7. Ben Jebli, Mehdi, 2015. "The Impact of Combustible Renewables and Waste Consumption and Transport on the Environmental Degradation: The Case of Tunisia," MPRA Paper 68038, University Library of Munich, Germany.
    8. repec:eee:rensus:v:76:y:2017:i:c:p:62-71 is not listed on IDEAS
    9. Ben Jebli, Mehdi & Ben Youssef, Slim, 2017. "Renewable energy, arable land, agriculture, CO2 emissions, and economic growth in Morocco," MPRA Paper 76798, University Library of Munich, Germany.
    10. repec:aen:journl:ej38-5-jaraite is not listed on IDEAS

    More about this item

    Keywords

    Renewable and non-renewable electricity consumption; Trade; Panel cointegration.;

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • E1 - Macroeconomics and Monetary Economics - - General Aggregative Models
    • F1 - International Economics - - Trade
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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